Coal will remain India's main energy source for the next three decades although its share will gradually fall as the country pushes renewable power generation, according to a government report. India is the world's third-largest coal producer and the third-biggest greenhouse gas emitter.

In order to meet the coal demand in next five years, Coal India Ltd, the main coal producer, has an ambitious plan of increasing its production to one billon tonnes by FY2019-20. CIL's production is showing an increasing trend, having gone up from 494 Mt in FY15 to 554 Mt in FY17.

In the past five years, coal power made up over two-thirds of capacity additions in India's generation, and currently accounts for more than 60 per cent of India's power capacity. According to the International Energy Agency (IEA), India's coal demand will see the biggest growth over the next five years, despite a global slowdown.

India will need huge investments adding up to over Rs.10 lakh crore in coal mining and its allied sectors to achieve the government´s target of 1.5 billion tonne (BT) target of coal production by 2020, according to a PwC study.

Coal plays an essential role in our global energy mix, particularly in India and the developing world through electricity generation. This fossil fuel has gained prominence due to its availability in abundance in the bowels of earth, lack of disastrous impact like nuclear plants do, and favourable economics it continues to enjoy in power generation

The transaction between Tata Power and Indonesia-based PT Bumi Resources Tbk for the sale of 30 per cent stake in PT Arutmin Indonesia, which was struck in January 2014, has been stalled as falling coal prices have left Bumi´s cash flows under pressure.